The International Monetary Fund is set to release $497 million to Pakistan as part of a three-year economic bailout package approved in 2013.The donor agency expected the country to introduce reforms in energy sector and get rid of the loss-making public sector organizations. The government had approached the donor agency soon after coming to power for a $6.6 billion bailout plan, which was granted on the condition that the government will restructure energy and taxation sectors. From January 26 to February 4, the IMF officials reviewed the economic performance of the country and the next tranche is awaiting the approval of the IMF Management and the Executive Board. Meanwhile, all eyes are set on the emerging foreign investment in Pakistan, the China Pakistan Economic Corridor, reforms in the energy sector, and real GDP growth rate at 4.5 percent for the financial year 2015-16. The country is expected to become a hub of business and trade activities after the economic corridor is extended to the central Asian states.
As a matter of fact, poor cotton yield, falling exports, energy crisis and political unrest have slowed down the growth prospects of the country.However, the IMF mission and the Pakistani officials reached a staff-level agreement on the completion of the tenth review under the Extended Fund Facility arrangement. The reports of discussions between the two sides revealed a startling fact that Pakistan has failed to improve its financial affairs and the government, which had promised to break the begging bowl, has been desperately looking for funds at the cost of the national economy. The foreign exchange reserves of the country once reached $21 billion mark, but on the behest of borrowed money and not on the base of the real economic growth. It is even unfortunate that the government wants to take the certificate of good governance from the donor agencies which extended the loans money with their specific agenda.
There is no denying the fact that the government sometime has to take unpopular decisions, but the interests of the country should reign supreme. The country should not be made hostage to the colonial powers of the modern era which offer funds with dictations. The government should concentrate on steps which help boost the economy and industrial growth as unrealistic tax targets, high electricity and gas tariffs and unfavourable business conditions are severely affecting the economic development of the country. Prime Minister Nawaz Sharif himself is a businessman and he can understand the problems of the business community more than anyone else.
